Oldest Bike Factory in Bangladesh Closes
Meghna Bangladesh Limited (MBL) is to cease its operations by November 30, 2010. It is the 1st bicycle factory established in 1965 in Bangladesh. Mizanur Rahman, Managing Director of MBL (photo) announced
DHAKA, Bangladesh – Meghna Bangladesh Limited (MBL) is to cease its operations by November 30, 2010. It is the 1st bicycle factory established in 1965 in Bangladesh. Mizanur Rahman, Managing Director of MBL (photo) announced the closure recently.
Although MBL is situated in an industrial area that used to be on the outskirts of the capital Dhaka in the 60’s, it now falls almost in the center of the country’s capital. The real estate value has sky rocketed and now running a factory in the heart of Dhaka does not make business sense.
Faced with traffic congestion in the city and the Dhaka city council’s ban on container movements by trucks from morning to midnight; the MBL management had no other option than to close down the factory and construct a business tower in its place. The dismantling is to start in December 2010.
The closure of MBL has a special impact because this is the 1st bike factory of the country and is the first native Bangladeshi owned factory to export bikes to the UK in 1999. Gradually it achieved a success in the European market and as follow up Meghna Group did set up other bike factories.
Last year Bangladesh exported 419,973 bikes to the EU and ranked as 9th largest bike supplier to the European Union. With the closure of MBL this figure is expected to drop significantly because MBL on average exports 125,000 bikes a year to the EU. When contacted Rahman, who is also the president of bicycle exporter association of Bangladesh, said: “We are aware that total bike export from Bangladesh in 2011 will drop below the 500,000 mark, but we are aiming at a higher average price per bike by producing better and higher quality bicycles.”